Am I being too conservative with future home purchase budget?
Looking to purchase: 625-650k house (10% down, mortgage 575-600k)
Income: 150k (90k me in tech, 60k wife is a teacher)
Take home pay: $8k
Expenses: $5k (mortgage, prop tax, gas, groceries, insurance, phones, internet)
Discretionary spending: $800
That leaves 1k left for general saving (sinking fund savings, vacations, new car savings, etc). We are frugal, budget monthly, and have absolutely zero debt except our current mortgage. Cars owned outright. I work in tech and my wife is a teacher so it's nice to know she'll have a strong pension in the future.
This seems tight to me. The thought of bringing home 8k and 5k going out the door in expenses before retirement savings seems too high for me to get comfortable with. The last thing that makes this more nerve wracking is that we're expecting our first child in February, so household take-home pay will drop from 8k to about 6.5-7k with her on EI. Then when she goes back to work, daycare bills will be hell. We're in in our late twenties. If we buy a new house and don't ever pay extra on the mortgage the whole 25 years, the house would still be paid off by our mid 50's which would be very nice.
Am I being unreasonable? Too paranoid? Let me have it, RFD. I've been pondering this for months now.